Exclusive: Microsoft has no plans to pursue Salesforce - sources
By Nadia Damouni
(Reuters) - Microsoft Corp (MSFT.O: Quote) currently is not weighing an offer for Salesforce.com Inc (CRM.N: Quote), two people familiar with the matter said on Thursday, dampening speculation that Microsoft could be drawn into bidding for the cloud software company.
Bloomberg News, citing people with knowledge of the matter, reported earlier this week that Microsoft was evaluating a bid for Salesforce after the latter was approached by another unnamed would-be buyer.
Microsoft considers Salesforce's current market valuation expensive, one of the people said. It is possible that Microsoft could review a bid for Salesforce in the long term, the other person said.
The sources asked not to be identified because the deliberations are confidential.
Microsoft and Salesforce both declined to comment.
San Francisco-based Salesforce is No. 1 in the $23 billion-a-year customer relationship management (CRM) market, according to tech research firm Gartner. It helps corporations organize and track sales calls and leads.
Salesforce's services are entirely provided over the cloud, with no software directly installed on PCs. Oracle (ORCL.N: Quote) and Microsoft, which were relatively late to the cloud model, have much smaller online CRM revenues.
As a result, Microsoft and several other big software companies are seeking to beef up their presence in cloud computing. Continued...